Current as of: 2009
Current as of: 2010
The authority has the powers with respect to finance as follows, and, in exercising such powers, shall abide by all statutes, regulations and procedures to which counties must generally adhere in such matters:
(1) To borrow money for any of its corporate purposes and issue its bonds for its corporate purposes, including refunding bonds, in such form and upon such terms as it may determine, payable out of any revenues of the authority, including grants or contributions from the federal government or other sources, which bonds may be sold at public sale.
(A) Revenue bonds may be issued for the above purposes and the authority may pledge as security for such bonds all or any portion of the tolls, fees, rents, charges or any other revenues derived from the operation of the railroad and related uses of the properties. Any such fees, rents or charges so pledged that are fixed and established pursuant to the provisions of a lease or contract are not subject to revision or change except in such manner as is provided in such lease or contract.
(B) Any bonds issued pursuant to this part shall state on their face that they are payable as to principal and interest, solely from revenues of the authority and shall not constitute a debt of the state or any political subdivision thereof other than the authority, and shall not constitute any indebtedness within the meaning of any constitutional or statutory debt limitation or restriction. Neither a director of the authority nor any person executing such bonds shall be liable personally thereon by reason of the issuance thereof.
(C) In case any of the directors or officers of the authority whose signatures appear on any bonds or coupons cease to be directors or officers after authorization but before delivery of the bonds, their signatures shall be valid and sufficient for all purposes.
(D) Any provision of the law to the contrary notwithstanding, any bonds issued pursuant to this part are fully negotiable.
(E) Any bond reciting in substance that it has been issued by the authority pursuant to this part and for a purpose or purposes authorized by this part shall be conclusively deemed, in any suit, action or proceeding involving the validity or enforceability of the bond or the security for the bond, to have been issued pursuant to such provisions and for such purpose or purposes.
(F) Obligations issued by the authority pursuant to the provisions of this part are declared to be issued for an essential public and governmental purpose and shall be exempt from taxation by the state, or by any county, municipality or taxing district of the state, except inheritance, transfer and estate taxes.
(G) With respect to refunding bonds, the provisions of title 9, chapter 21 apply; with respect to funding bonds, the provisions of § 9-11-108 apply; and
(2) To receive funds from county or city governments for purposes of planning, the acquisition of properties and facilities, and the construction, operation, management and maintenance of all properties and facilities, to which end such governments are authorized to provide funds for any of these purposes, upon grant or loan and are empowered, but not required, to impose taxes to accomplish the purposes of this part.
[Acts 1981, ch. 542 (Orig. Compl. as Priv. Acts 1981, ch. 57), §§ 8, 11; T.C.A., § 66-2-308; Acts 1989, ch. 403, § 8; 2005, ch. 396, § 16.]
U.S. Code Provisions: Railroads